ACC 403 Mid Term I

ACC 403 Mid Term I

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1.       An audit to determine whether an entity is following specific procedures or rules set down by some higher authority is classified as a(n):

2.       Which of the following services provides the lowest level of assurance on a financial statement?

3.       Any service that requires a CPA firm to issue a report about the reliability of an assertion that is made by another party is a(n):

4.       Which of the following is not a SysTrust Services principle as defined by the AICPA?

5.       An examination of part of an organization's procedures and methods for the purpose of evaluating efficiency and effectiveness is what type of audit?

6.       One objective of an operational audit is to:

7.       Hansen Corporation's stock is listed on a national stock exchange and registered with the Securities and Exchange Commission. Hansen's management hires a CPA to perform an independent audit of Hansen's financial statements. The primary objective of this audit is to provide assurance to the:

8.       The AICPA has authority to establish standards and rules in all but which of the following areas?

9.       Which of the following is an element of the CPA's quality control system that should be considered in establishing its quality control policies and procedures?

10.   Within the context of quality control, the primary purpose of continuing professional education and training activities is to enable a CPA firm to provide its personnel with:

11.   Which of the following are audit standards used in professional practice by audit firms?

12.   The organization that is responsible for providing oversight for auditors of public companies is called the ________.

13.   When the auditor determines that the financial statements are fairly stated, but there is a nonindependent relationship between the auditor and the client, the auditor should issue:

14.   A misstatement in the financial statements can be considered material if knowledge of the misstatement will affect a decision of:

15.   When dealing with materiality and scope limitation conditions:

16.   Which of the following is least likely to cause uncertainty about the ability of an entity to continue as a going concern?

17.   The appropriate audit report date for a standard nonqualified audit report for a non-public entity should be the:

18.   Auditing standards require that the audit report must be titled and that the title must:

19.   The AICPA's Code of Professional Conduct requires independence for all:

20.   The AICPA's Code of Professional Conduct states that a CPA should maintain integrity and objectivity. The term "objectivity" in the Code refers to a CPA's ability to:

21.   When determining whether independence is impaired because of an ownership interest in a client company, materiality will affect ownership:

22.   Several months after an unqualified audit report was issued, the auditor discovers the financial statements were materially misstated. The client's CEO agrees that there are misstatements, but refuses to correct them. She claims that "confidentiality" prevents the CPA from informing anyone. Which of the following statements is correct?

23.   The underlying reason for a code of professional conduct for any profession is:

24.   Freedom from ________ means the absence of relationships that might interfere with objectivity or integrity.

25.   Interpretations of the rules regarding independence allow an auditor to serve as:

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